UAE-based globally recognized energy logistics company Tristar is planning to list on the Dubai Financial Market (DFM) to raise $160 million for a 24 percent stake.
The company, which is based in the Jebel Ali Industrial Area, began as a road transport company in 1998 and has since grown to become a partner to major national and international oil companies. The company plans to list its share next month.
Mr. Eugene Mayne Group Chief Executive of Tristar commented that “I am proud to have witnessed the evolution of Tristar from a local road transportation business into a global world-class integrated energy logistics solutions provider. Tristar’s initial public offering (IPO) marks an exciting milestone in the group’s story as we continue to grow, innovate and shape the future of the logistics industry.”
Tristar’s float will be the first since Emaar Properties’ real estate development arm was listed on the Dubai Financial Market in 2017.
The company’s three major shareholders are selling their shares; Kuwait-based logistics firm Agility (65.12 percent), Gulf Investment Corporation (19.61 percent), and a vehicle owned by Mr. Mayne, who owns 15.27 percent of the shares will float their stakes on DFM.
Tristar operates a fleet of more than 2,000 trucks and 35 vessels. It has 69 fuel farms and over 100 remote sites spread across 21 countries on three continents.
Mr. Mayne’s company has increased revenue by an average of 12.4 percent per year over the last three years, to $453.4 million by 2020, with earnings before interest, taxes, depreciation, and amortization (EBITDA) of $103.6 million.
Mr. Mayne remarked that “our business, which enjoys a strong reputation, developed through years of operational excellence, underpinned by a customer-centric model, and a commitment to the highest quality and safety standards, has become a trusted logistics partner for major oil companies globally”.
It intends to use some of the proceeds from the float to repay $53.6 million in debts to related parties to decrease its current net debt-to-EBITDA ratio of 3.5x as at the end of last year to a figure between 2.2x and 2.5x.
Last year, it paid a $29.6 million dividend to shareholders, including a special $19.6 million pre-IPO dividend. The company stated that it plans to pay out 60-70 percent of net revenue in the financial year 2021. It plans to pay a dividend of about 60 percent of net income in the coming years.